State leaders move to limit tuition increases

Many students and families say they have struggled under the double-digit tuition increases that public universities have imposed in recent years.

This spring, leaders in the Florida House and Senate aim to control tuition growth by drastically reducing how much individual schoolscan raise their own, so-called "differential'' tuition rates.

Q: What is "differential" tuition?

A: Basically, it's an add-on tuition set by each individual university. Here's how itworks: Each year, the Legislature sets the base undergraduate-tuition rate for Florida residents across all state universities. Current law says the increase in base and differential tuition combined cannot exceed 15 percent annually. The proposal would cap the total increase to 6 percent unless the Legislature decided to go higher.

Q: So give me examples of how this would work.

A: Let's say lawmakers raise base tuition 2 percent for a school year. Then each university could boost its own differential tuition by up to 4 percent. If the Legislature didn't raise the base rate, the most the "differential'' tuition could go up at each school would be 6 percent.

Q: Do universities support such a change?

A: University presidents have not spoken publicly about the proposal. But they have relied on the money to help cope with rising costs and cuts in state funding. UCF President John Hitt noted that differential tuition also helps low-income students. "Since its inception, differential tuition has funded programs that benefit students, particularly since 30 percent is directed to need-based financial aid," Hitt said.

Q: Could a tuition cap hurt students?

A: That depends on how well each school can get by without the additional revenue. A recent report from the State University System shows that differential tuition collected in 2012-13 allowed universities to hire and retain 1,444 faculty members and to save or add 11,358 course sections.

Q: How much differential tuition is collected?

A: Universities collected a combined $236 million last school year, according to the State University System. In 2011-12, they received $143 million — nearly double the estimated $76 million received the previous year. Florida International University had the highest differential tuition ($52.29 per credit hour) in 2012-13, while University of Central Florida brought in the most money ($44 million).

Q: How would schools deal with the loss of funding?

A: They hope lawmakers will allocate more state funding. The Board of Governors has asked for 4 percent more for university operations in 2014-15. It also has asked the Legislature for $50 million to be distributed as part of a new program that will reward schools that improve in areas such as graduation rates.

Q: Would the change lower the cost of the Florida Prepaid College Program?

A: Yes.Prepaid-contract prices are based partly on how much tuition is projected to grow during time. For example, the lump-sum cost of a four-year University Plan for a newborn today is $53,729. If differential tuition is capped at 6 percent, that price will drop more than $10,000, an official said. For the same plan, monthly payments would drop about 15 percent to 20 percent.

Q: How does Florida tuition compare with other states'?

A: Florida's public-university tuition remains among the lowest in the country. This school year, the national average for in-state tuition and fees at four-year institutions is $8,893, according to the College Board. In Florida, it is $6,336.

Q: Does the governor support cutting differential tuition?

A: Gov. Rick Scott opposes tuition hikes. Last year, he vetoed a 3 percent increase that the Legislature had approved. In his State of the State address this month, he said he wants to "get rid of the 15 percent annual increase."

Q: So what's next?

A: Legislative committees will continue to debate reducing or eliminating differential tuition. House Speaker Will Weatherford said that he, Gov. Scott and Senate President Don Gaetz agree on the need to at least lower differential tuition. "I think it allows universities some flexibility," Weatherford said. "We don't know what future budgets will look like, so I would not be in favor of completely eliminating it."